1. Bridging the technology gap with limited human capital resources
- Author
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Hélène Latzer, Institut de recherches économiques et sociales (UCL IRES), Université Catholique de Louvain = Catholic University of Louvain (UCL), and UCL - SSH/IMMAQ/IRES - Institut de recherches économiques et sociales
- Subjects
Economics and Econometrics ,JEL: F - International Economics/F.F2 - International Factor Movements and International Business/F.F2.F23 - Multinational Firms • International Business ,050204 development studies ,FDI ,Developing country ,Foreign direct investment ,International trade ,Contiguous knowledge ,Human capital ,Technology gap ,Technological growth ,JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O3 - Innovation • Research and Development • Technological Change • Intellectual Property Rights/O.O3.O33 - Technological Change: Choices and Consequences • Diffusion Processes ,0502 economics and business ,Economics ,050207 economics ,Industrial organization ,Technological change ,business.industry ,05 social sciences ,Equity (finance) ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Shock (economics) ,Multinational corporation ,8. Economic growth ,business ,JEL: O - Economic Development, Innovation, Technological Change, and Growth/O.O4 - Economic Growth and Aggregate Productivity/O.O4.O40 - General - Abstract
International audience; We study whether restrictions concerning the mode of implantation of multinational firms (MNCs) are desirable for a developing country in terms of its technology acquisition strategy. More precisely, we aim at determining under which conditions domestic equity ownership constraints imposed on MNCs turn out to be beneficial for a country aiming at narrowing its technology gap with the world frontier while facing a limited supply of skilled labor resources. We base ourselves on an extension of the " variety model " of technology-driven growth, and are able to demonstrate that the desirable regulation depends non-monotonically on the overall available amount of skilled human capital. We further find that a positive shock on the pace of technological progress at the world frontier increases the scope of conditions under which ownership constraints become desirable.
- Published
- 2013